Margin Call Review

If your account equity falls below the maintenance margin percentage, your broker will issue a margin call. They will demand that you deposit more cash or sell off securities to bring the account back up to the required level. Why Do Margin Calls Happen?

The investor is at 31.8% equity. The broker requires 30%. This is a "grey area"—dangerously close. The stock drops one more dollar to $21. Margin Call